To the Board of Governors
City Club of Portland:
In October 1944 you authorized the appointment of a committee to study the question of race relations in the City of Portland in so far as the Negro may be concerned. This committee understands its assignment to be a study of the treatment of the Negro in the social and economic life of the city and to make recommendations for change in present practice and procedure which would relieve immediate and postwar race tensions.
Negro population in the Portland area has increased from approximately 1,900 to about 18,000 since 1941. This large growth makes possible the development of an acute problem unless a policy of fair and equitable treatment is put into effect promptly and continued after production for war is stopped.
GENERAL BACKGROUND
The report in general brings together factual data bearing upon the background, environment, handicaps and lack of opportunity for cultural development of the Negro.
Fundamentals
The majority of Americans express the opinion that whatever Negro problem there was has already been solved. But the history of the treatment accorded ten percent of the American population represented by the Negroes does not present a picture of which an American with a clear concept of the true nature of democracy can be very proud. We have rightfully criticized the Germans for their Nazi doctrine of Aryan race superiority while we, in America, feel that the white race is superior to the black. As we read and understand the plight of the Negro in America, we are shocked to see that a fair share of the privileges of being an American has not been extended to the Negroes of our land.
Numerous tests have been conducted to determine the intelligence of different groups and individuals. For example, in the First World War such tests were given the American Expeditionary Forces which showed Northern Negroes were possessed of higher intelligent quotients than Southern whites as follows:
Southern Whites: Median Scores
Mississippi�����������41.25
Kentucky������������ 41.50
Arkansas������������41.55
Northern Negroes:
New York�����������..45.02
Illinois�������������47.35
Ohio��������������49.50
These data bear witness to the fact that higher income, better education, more cultural advantages and other opportunities have profound effect upon the degree of intellectual superiority of the recipient of these advantages.
Race Prejudice
For ages past religion has formed the basis of prejudice and has been the cause of much persecution. On the other hand, race prejudice is of recent origin. We are horrified at all of the bloodshed resulting form the religious conflicts of the past. It is possible that historians of the future will report race prejudice as one of the horrors of the twentieth century. Today over the world, we find weak nations living in fear of strong nations; poor afraid of the rich; the rich fearful lest they lose their wealth. Political and economic power is the number one cause of fear in the world today. Freedom from such fears would seem to offer the greatest hope for cure of race prejudice.
Dr. Gunnar Myrdal, distinguished social economist of the University of Stockholm retained by the Caregie Corporation to study the Negro problem in America, following a very exhausting study in all parts of the country, declared that ” a great majority of white people in America would give the Negro a much better deal if they knew the facts, but find it easier and much more comfortable to know as little about him as possible.” He finds that every American believes in the principles set down in the Declaration of Independence and the Bill of Rights-That all men are created equal,” that they believe in freedom of speech, freedom of religion and racial tolerance that America is the “cradle of freedom,” the “land of opportunity,” and the “home of democracy.”
In principle most Americans, especially those in the North at least, concede that the Negro has the same right to freedom and justice as other citizens. However, in practice they have not shared many of these rights. Dr. Myrdal concludes, “The gap between our profession and our action constitutes the Negro problem.”
A Negro has not very often been permitted to be an American first and a Negro second.
Economic Opportunities
A strong factor in the plight of the Negro is economic. Most Negroes are so desperately poor that is impossible for them to acquire the education without which they are hopelessly relegated to the unskilled class. Thus a vicious cycle is set up and it is no wonder that Negroes lack many attributes of the more privileged.
Organized Labor
Policy-Attitude of National Unions
The national organizations of both A.F. of L. and the C. I. O. have adopted policies of nondiscrimination in the treatment of individuals because of race, color, creed or sex. For several years past, the annual conventions of these organizations have reaffirmed their positions and at times strengthened them.
The following is the declarations of policy reaffirmed by the 19944 Conventions:
Of A. F. of L.-
“The founders of the American Federation since inception were opposed to any prejudices, traditions, social or religious demarcations which could be applied to interfere with, or prevent thorough-going organization of all wage earners. The right to work, or membership in a trade union should not be limited or restricted in any manner because of creed, color or race.”
Of C.I.O.-
The C.I.O. again reaffirms its unwavering opposition to discrimination against the Negro people of any other Negro people or the people or the people of any other minority… The C.I.O. urges all affiliated unions to renewed vigilance against any form of racial discrimination, against all conditions that make fertile grounds for such discrimination… We recommend that the C.I.O. unions seek the incorporation into collective bargaining agreements a provision that no person seeking employment shall be discriminated against because of race, creed, color or place of origin.”
White Collar Opportunities
Most Negroes work for white people. Negro professional workers receive a low scale of income compared with similar white professionals.
A total of 254,000 Negroes* were listed in 1930 census as white collar employees, business or professional men – which is 1 out of 15 of the Negro population- while 2 out of 5 whites were listed in same categories of employment.
School teaching is one of the Negroes’ principal professions confined chiefly to Negro schools. Salaries are much lower and teaching load heavier. In the South, average Negro salary in 1935 was $510.00* compared to $833.00* per year for whites
In 1940 there were only 4,000* Negro physicians and surgeons in the United States. Only on a few hospitals admit Negro and white doctors on a basis of complete equality.
There were 1,200* Negro lawyers in 1930. Negroes find that a less capable white lawyer is able to do more for them before a white court than the best Negro lawyer.
Citizenship Rights
Negroes are often barred from voting in the South because of such restrictions as payment of poll tax and though, exclusion from Democratic primary activities, admission to which is gained through a voluntary organization which permits membership on the basis of property ownership qualifications, literacy and intelligence tests, or teen states have constitutional guarantees of equal civil rights for Negroes. They are California, Colorado, Connecticut, Illinois, Indiana, Iowa, Kansas, Massachusetts, Michigan, Minnesota, Nebraska, New York, New Jersey, Ohio, Pennsylvania, Rhode Island, Washington, Wisconsin.
Education
In seventeen states and the District of Columbia, Negro children are compelled by law to attend separates schools and these Negro schools are notably inferior as equipment and money available for operation.
*The average Negro more than 25 years of age has received only 5.7 years of schooling as compared with 8.8 years for the average white. However, the later years have shown marked increase in number of college graduates. Very few Negroes have money enough to go to college. Practically all northern state universities and colleges admit Negroes. In southern state universities and private white colleges no Negroes are admitted. Several southern states maintain small Negro Colleges.
Segregation
Negroes are Americans by birth, by citizenship and in the social habits- more truly Americans than millions of white people of recent European origin, yet as a result of circumstances most of them live apart from other Americans, attend their own churches, patronize their own stores, attend their own schools, have their own social cultural organizations, and in many places, work at Negro jobs.
National Organizations
The Negro struggle has been led in recent years by interracial agencies such as these:
National Association for the Advancement of Colored People founded in 1909.
The Urban League founded in 1911.
The Commission on Interracial Cooperation (South only).
The American Council on Race Relations.
Bureau of Intercultural Education.
National Conference of Christians and Jews….
FACTS ABOUT PORTLAND
The job of fact finding was divided among the ten members of the committee. The results of this research are reported under the several heading as follows:
Negro Population in Portland Area
Reginald Johnson estimated 8,000 in-migrant Negro laborers in this area, which translated into population would approximate 20,000 persons.
The Kaiser Company , Inc., conducted a survey in Vanport City to determine the state form which each Negro family came, the results of which are arranged according to rank of state in the following tabulation:
NUMBER OF NEGRO FAMILIES FROM DIFFERENT STATES
Texas 242
Arkansas 231
Oklahoma 129
Missouri 108
Louisiana 104
Alabama 103
Illinois 101
Mississippi 70
California 62
New York 47
Washington 45
Nevada 40
Dist. of Columbia 35
Colorado 20
Oregon 19
Kansas 18
Tennessee 17
Iowa 15
Arizona 13
Nebraska 13
Georgia 11
New Mexico 9
Indiana 8
Michigan 7
Ohio 7
Minnesota 6
Utah 6
No. Carolina 5
Pennsylvania 5
West Virginia 5
Montana 4
Idaho 3
Wisconsin 3
So. Carolina 2
Virginia 2
Florida 1
Kentucky 1
Maryland 1
Massachusetts 1
New Jersey 1
No. Dakota 1
So. Dakota 1
Wyoming 1
Total 1,525
Average number of individual Negroes per family in Vanport is 3.41. At the time of this survey there were 5,200 Negroes living in Vanport, as of May 1,1945 the count was 6,317. The Kaiser Company, Inc., found in excess of fifty percent of Negroes planned to stay in Portland.
Distribution of Negro Population
The map reproduced herein gives a spot check of the distribution of Negro residents in the City of Portland, indicating that Negro families live in sixty of sixty-three (U.S. Census Bureau) districts in Portland. The district bounded by N.E. Union Avenue and Willamette River, containing a large majority of Negro residents in the city may be said to constitute an area of concentration of Negro families.
This concentration has largely been brought about by an unwritten code of real estate interests governing the sale of property to Negroes only, in a part of this area bounded by N.E. Holladay, N. Russell, N. Williams Avenue and the river. Also, because of its close proximity to downtown Portland, Union Station, the railroad shops and yards making easy transportation to centers of Negro employment.
During the years of the existence of this Negro community there have been established in it eighteen places of business and amusement, among which is found one physicians and one dentist’s office, two fraternal buildings, several clubs and restaurants.
The other principal concentrations of Negro population are in the Woodlawn, Alberta, and Waverly Heights districts. In these areas permanently employed Negroes live in well-kept individual family dwellings.
As indicated in other parts of this report, there is a large block of Negro families living in Guilds Lake and Vanport temporary war housing projects. There are a few Negroes living in a housing project in Linnton, also in Fairview Homes. In Guilds Lake, Vanport, and Fairview housing projects, Negro houses are segregated from other residences. The committee, in attempting to learn the reasons for adoption of this policy, were buffeted back and forth between the Federal Housing Authority and other real estate interests. The nearest to an answer received was the theory expressed that in constructing war housing, the pattern set by the community followed.
Economic Opportunities Organized labor
Local Policies
While the above expressed policies of A.F. of L. and C.I.O. leave no room for doubt as to the position of these two labor bodies in opposing discrimination against the Negro, it must be recognized that putting them into practice by the affiliated unions is not necessarily assured. The national organizations are composed of National or International unions through which local unions of the various crafts and industries are affiliated with one or the other. Each of the National or International Unions representing certain crafts or industries have voluntarily affiliated with either of the two main labor movements and while by affiliation they are generally expected to carry out the policies of the principal body, nonetheless the autonomous determination by each of a policy such as the instant one is reserved. With regard to the discrimination issue, a number have let it remain a moot question with no stand taken either for or against, while only four International Unions still have contained in their constitutions or rituals provisions that exclude the Negro from membership. During recent years the leaders of both A.F. of L. and C.I.O. have been instrumental in securing the compliance by several National or International Unions of the non-discrimination policy in reply to specific complaints by the F.E.P.C. or by others.
While the voluntary composition of the A.F. of L. and the C.I.O. permits quite a latitude in the particular policies of their International Union affiliates, the International Unions quite definitely set the pattern of operation as to policy for the local unions. Where, for instance, an International Constitution permits no discrimination, it is generally carried out by the local union and likewise in the case of a provision barring Negroes or setting up an “auxiliary organization.” It is, however, evident that the particular position of an International Union enforcing a position on a local Union one way or the other is largely conditioned by the attitudes of the members of the local union, and the community in which the problem arises.
Labor Unions in the Portland-Vancouver Area
The race issue is often the most obvious aspect of an economic realignment of forces. There is considerable reason to believe that much of the local resentment of the Negro is a part of a general suspicion of the “newcomers,” of the “shipyard workers” prevalent here; this suspicion in turn is fear of the establishment there of a large working-class element permanently, and the social and political realignments consequent to this.
It is acknowledged by those within the ranks of labor, that discrimination against the Negro is practiced by a minority number of the unions in this area. In some cases, Negroes are denied the membership in the union and also the right to work within the unions and also the right to work within the union’s jurisdiction. Only two of the unions openly make this denial and claim their position is governed by provisions of their International Constitution, which sets up the barrier. The balance effect the denial by statements that “no work is available” or sufficient qualifications for the work are not met by the Negro applicant.
A number of unions while denying membership into the union, permit the Negro to work under the jurisdiction of the union. Several unions grant “work permits” and give the clearances to the union without payment of any fees to the union. The Boilermakers, under the jurisdiction of which most of the Negroes working in the shipyards are employed has setup an auxiliary local in accordance with provisions of its international constitution and all Negroes working under the union’s jurisdiction are segregation into the auxiliary.
“The Boilermakers and Shipbuilders, which has 65 per cent of the AFL shipyard workers under its jurisdiction, has altered its rules. The exclusionist clause remains in the ritual, but its 1937 convention authorized the union executive council to establish Negro auxiliary locals. Members of Negro auxiliaries pay the same due as do white members, but in every other conceivable manner they are discriminated against. Negro auxiliaries are established by fiat of the executive council, and may be peremptorily disestablished by it; they can only be organized where a white local exists, and they are under the supervision of the nearest white local. Negroes can transfer only to other auxiliaries; they have no voice in union conventions or other union policy making bodies; Negro auxiliaries are not permitted a business agent, but must depend upon the business agent of the supervising whit local for jobs; they are not permitted a grievance committee, and are allowed only inadequate and ineffective representation on the supervising white local’s committee; they received only one-half as much in death and disability benefits as do white members, and Negroes are not eligible to participate in the union’s voluntary insurance plans; only Negro auxiliary members may be fined for “intoxication or creating a disturbance” in a union meeting; whereas whites between the ages of 16 and 70 are eligible to membership, only Negroes between the ages of 16 and 60 may join the auxiliary and worst of all: Negroes may not be employed as apprentices, and no Negro may be promoted to a higher classification unless he receives first, the approval of the supervising white local, and third, the approval of the international union president! It is surely a serious question whether an auxiliary with such by-laws constitutes an improvement over complete exclusion.”*
This policy is borne out in the Portland chapter of the Boilermakers Union Local No. 72 and in so far as can be learned no meetings of this auxiliary have ever been held.
In considering the discrimination that does exist, the international and local constitutions of the unions might forbid discriminatory tactics in admitting members but nevertheless the attitude of the union members themselves on the issue of admitting Negroes has been the determining factor. We have knowledge of two exceptions where the union’s constitutional barriers have dictated the policy. The issue in several cases has been decided by a vote of a regular meeting of the union or by action of the membership on the job in refusing to work with Negroes. For instance, the Portland C.I.O. Longshoremen’s Union operating under its international’s policy of non-discrimination referred Negroes to work in that craft only to have the members on the job refuse to work with them. A general work stoppage on the waterfront was only averted by removing the Negroes from the job. The A.F. of L. Laundry Worker’s Union experienced the same attitude on the part of the membership when Negroes were put to work in a Portland laundry.
Opposition from employers to the hiring of Negroes has a considerable bearing on the fact that Negroes do not hold membership in more trade unions in this area. Too often people have accepted the fact that Negroes are not employed in specific industries or crafts where unions hold agreements as evidence per se that discrimination is exercised by the union. This is not true, with the exception of the relatively few cases above where unions holding “closed-shop-hiring rights” contracts will not admit the Negro to membership nor permit him to work without affiliation. By far the principal deterrent to the Negro having available a wider field of possible employment is the position of the employer in refusing to place him on the payroll. It is probably fair to state that the employer’s position in most instances has been guided by what he feels is an adverse attitude of his employees such as in the Longshoremen’s and laundry workers cases mentioned above have been guides to the determination that the Negro is not welcomed on the payroll. Likewise the attitude of the general public in refusing to be served by a Negro waitress, or to treat a Negro salesperson with respect have determined the employer’s reluctance to not discriminate.
Your committee is convinced that not much progress will be made in the elimination of discrimination against the Negro in the labor movement until the employer, the union and the public, each take equal interest and determination to bring it about.
Evidences are that labor has made much progress during the past few years, and the number of unions which discriminate against the Negro is fewer each year. No one will deny that they have shown a leadership that has been lacking in other community groups. The fact that Negroes hold membership today in as large a number of unions as they do shows that someone has taken action. Education of the membership by the union officers as to the legitimacy and decency of the announced policies of nondiscrimination by A.F. of L. and C.I.O. will help. The influence will also have to come from other spheres of community life that effect the opinion of the individual citizen and union member. The leadership for a Christian and American mode of thought-action will also have to come from such organizations as the City Club.
Federal Agencies
The policy of the federal government with respect to the employment of Negroes is set forth in Executive Order No. 9346 issued by the President on May 27, 1943. Although the order goes into some detail as to the way in which the policy of the government is to be implemented, the following gives the general outline of that policy:
“As President of the United States and Commander in Chief of the Army and Navy, I do hereby reaffirm the policy of the United States that there shall be no discrimination in the employment of any person in war industries or in government by reason of race, creed, color, or national origin, and I do hereby declare that it is the duty of all employers, including the several federal departments and agencies, and all labor organizations in furtherance of this policy and of this Order, to eliminate discrimination in regard to hire, tenure, terms or conditions of employment, or union membership because of race, creed, color, or national origin.”
The Civil Service Commission of Portland, Oregon, lists approximately 10,000 Federal employees in the greater Portland area. By far the greater portion of all government employment is handled through the Civil Service Commission. When an agency needs personnel for a particular job, the Civil Service Commission certifies to that agency three individuals who seem to be qualified for the position (assuming there are sufficient applicants on the roster). It is up to the particular agency involved to select on of the three individuals so certified. Mr. Thomas W. Craig, regional director of the local Civil Service Commission, states that his instructions to his examiners are to certify names based exclusively on the qualifications of the individual and irrespective of whether the applicant is Negro or white. Although he had no official information on the matter, Mr. Craig felt that most of the federal agencies involved followed rather closely the policy set forth by the President in Executive Order No 9346. He stated that in only one instance was it necessary for the Fair Employment Practice Committee to intervene, and in this case, the particular supervisor involved agreed to discontinue the discriminatory practice that had theretofore existed.
Mr. Craig reported the difficulty which is experienced by some agencies due to the prejudice of certain supervisors. When the three names are certified by the Civil Service Commission to the supervisor who is to fill positions, an opportunity for discrimination is presented since the supervisor may reject the Negro applicant in favor of the white. In a certain instance that came to our attention involving a Negro who had a veteran’s preference and other qualifications which placed him in a preferred status, but was still rejected by the supervisor. A complaint was lodged with the head of the agency involved, and the matter straightened out. Thus, even though the head of the particular agency may be in entire sympathy with and trying to carry out the government’s policy, resistance may still be encountered down the line with particular supervisors.
Questionnaires were sent to twenty-six federal, Multnomah County and City of Portland agencies-replies were received from nineteen.
Those agencies reporting show a total employment of 6,943 with 132 Negroes employed as of May, 1945, 139 as of May, 1944, and only five Negroes as of May, 1941. It should be noted that 106 Negroes are currently employed in Hudson House, Vancouver, Washington, leaving only twenty-six Negro employees in all other agencies listed, with fifteen of them employed by the City of Portland. It is interesting to note that the City of Portland is now employing a greater number of Negroes than is employed by all federal agencies operating in the City of Portland.
From the data obtained, it is very difficult to conclude that there is non-discrimination in employment of Negroes by Federal Government agencies, irrespective of a uniformly announced policy to this effect. Many of the agencies report no Negroes employed and give as the reasons that they are not properly qualified to fulfill the responsibilities of the position in question. There is no doubt but there is merit to this reason in a number of instances. However, it is probable that if a conscientious attempt were made to find positions which Negroes particularly would be adequately prepared to fill, that a greater number could be employed. It is likewise true that private businesses and professions could find employment for Negroes in greater number if there were a will to do so.
We quote an excerpt from one reply which is indicative of the influence at work, “If it is against public opinion locally to employ or assign a Negro, or a member of another minority group to work with farmers at a certain location, there is little we can do in opposing that local prejudice and accordingly we must make our assignments in light of that condition. In other words, the controlling factor is not necessarily what this service would like to do, but what we can do under existing public opinion.”
Multnomah County
Multnomah County has a non-discrimination policy. At the present time, the county employs one Negro janitor who has worked for the county several years. Their personnel officer reports no Negro applicants for positions.
City of Portland
The City of Portland has a non-discrimination policy which seems to be carried out in practice as well as in theory. Miss Mildred Fahlen, senior personnel officer of the City Civil Service, reports that there are now fifteen Negroes working for the City of Portland. Some have risen to positions of authority and responsibility; for example, a Negro is in charge of the garage and has several individual working under his supervision.
Housing and Living Facilities
Negro Housing
In general, houses owned or rented by Negroes are old. This results from the practice of restricting sale of houses to Negroes to older districts of the city from which other races have moved out. No new housing is available to the Negro buyer unless it is located in the segregated or concentration area. Land values in this area are high, thus discouraging building. No mortgage firms were found to be interested in soliciting or financing loans to Negroes for building.
There are a very few apartments in the city available to Negroes. Such as are offered for rent to Negroes are small two to four-room apartments owned by Negroes. A few are houses which have been converted into apartments.
Representatives of the Apartment House Owners’ Association said they had no policy prohibiting renting to Negroes, claimed they had received no applications from Negroes for rent of apartments, agreed that Negro occupants would not be welcomed unless in a segregated project.
One private apartment house owner stated that the tenants of his apartments are chosen on the basis of character and reputation in the community regardless of race, color or creed.
The local Housing Authority reports 271 Negro families registered as desiring housing as of May 1, 1945.
As indicated in section on Negro population, a large portion of the Negroes now living in this area are housed in the several war housing projects in structures of a very temporary nature, which if permitted to be used as Negro housing following the war, would soon deteriorate into very undesirable slum areas.
Attitude of Real Estate Interests
Interviews with representatives of the Portland Realty Board and prominent realtors disclose the existence of a policy of restricted sale of property to Negroes. Such restriction confines the sale by any member of the Realty Board to Negroes to the segregated area, described in the Negro population section of this report, with limited sale in Woodlawn, Alberta, and Waverly Heights areas. This policy being more fully set forth in the Portland Realty Board’s Code of Ethics, Part III, Article 34, and By-Laws Article III, Sections 3 and 5 quoted as follows:
Part III. Article 34-CODE OF ETHICS.-A Realtor should never be instrumental in introducing into a neighborhood a character of property or occupancy members of any race or nationality, or any individuals whose presence will clearly be detrimental to property values in that neighborhood.
Article III. Section 4-BY-LAWS.-Duty of Members to the Public: It shall be an unethical practice for any member to be instrumental in introducing into a neighborhood a character of property or use, occupancy or ownership of property, or any individuals whose presence will clearly be detrimental to property values in that neighborhood. No instruction from any client or customer, except such as shall be applicable to changes of zone under the Zoning Ordinance of the City of Portland, shall relieve the member from his responsibility strictly to observe this Article. Complaints for violations of this Article shall not be considered unless filed with Portland Realty Board within ninety (90) days after the introduction into a neighborhood of the character of property, use, occupancy, or ownership of property, member of the race or nationality, or individuals, to which objection is made. The Board of Directors shall have power to make all needful rules and regulation, no inconsistent herewith, to effectuate the object of this Section.
The real estate men interviewed expressed a willingness to adopt a policy of unrestricted sale of property to Negroes as soon as the public would permit it being carried out. These men also expressed the feeling that the Negroes who do buy homes are making an earnest effort to improve their property, take pride in ownership, and that the improvements made had advanced the value of property in the segregated districts. Still, the argument of depreciation of property values with introduction of Negro ownership is advanced to justify continuation of a policy of segregation. It is probable that depreciation of property values results from white owners lowering the price of their property as Negroes come into their neighborhood.
It is difficult to account for the presence of a few Negroes in sixty of the sixty-three districts shown on the Portland map in light of existing policies of real estate men, excepting as they may be there because of either of the following reasons: Negro ownership in the particular district before that district was built up, or due to Negroes buying direct from owner without a realtor entering into the deal.
Most transactions of this type occur in areas where few Negroes reside. It is felt that present policies of realtors in handling sale of real property to Negroes will ten to increase direct sales by owners. In no instance of direct sale has there been evidence of “spite selling”. Usually the sale has involved an owner who disapproved the restricted sales policy.
Restaurants
There appears to be no established policy among restaurants of Portland governing service to Negroes. The adoption of such a policy has been discussed by the Restaurant Owners Association, which is made up of the larger downtown eating places but no official action has been taken. The association did, however, oppose the Civil Rights Bill introduced at the last legislative session.
According to the representatives of the Restaurant Owners Association, serve to Negroes is up to each individual owner. However, the attitude of the majority is that Negroes will not be served. Very few specifically ask Negroes to leave or otherwise draw public attention to this policy, but such instances have occurred.
Cafeterias generally do not discriminate against Negroes, as they find it rather difficult to enforce such a policy with their type of service. Several restaurants and some hotels do serve Negroes when accompanied by whites-and will take care of Negroes when specifically asked to do so by white customers. A few will serve Negroes when unaccompanied by whites.
Many small lunchrooms and restaurants, particularly in sections of Portland frequented by working men, display signs reading “White Trade Only.” Visiting race relation’s authorities have pointed out that Portland is the only city on the coast where such signs are displayed.
The fact is that it is somewhat difficult for the Negro to find a place to eat in Portland except at home. But it is also interesting to observe that the few eating places which do not discriminate against Negroes seem to have as many or more customers than those barring colored trade.
It is impossible to give a complete tabulation of policies of all Portland restaurants without making a complete survey, which was beyond the scope of the committee’s activities.
Hotels
Downtown Portland hotels may be said generally to refuse to accept Negroes as guests. They say their policy is, and always has been to “screen” all guests, regardless of advance reservations and to reject all “undesirables” regardless of race or color. Usually this results in Negroes being considered undesirable and whit desirable.
Exceptions are made for Negro celebrities, who are generally accepted as guests.
Insurance and Credit Rating
Life Insurance
To ascertain the policies of the major life insurance companies with respect o insuring Negro lives, your committee addressed inquiries to ten of the major companies, and in addition, conducted personal interviews with some of the leading life underwriters in the City of Portland. The companies expressed their general policies as follows:
- Unwilling to insure Negro lives; and
- Willing to consider Negro applicants only if they are exceptional physical and moral risks, but even then, only on the basis of a rateup in premium.
It should be recognized, however, that there are a number of very fine companies operating in the South and East that are organized to write Negro business. Only one Negro company, the Golden State Mutual Life Insurance Company of Los Angeles, California, operates on the Pacific Coast and that company is not authorized to do business in Oregon.
General, Fire, and Auto Insurance
So far as could be learned, no discrimination exists with respect to Negroes placing general and fire insurance. Though the companies do not actively solicit Negro business, they are willing to place coverage at standard rates assuming the risk to be standard. It should be recognized, however, that as a general rule the physical properties owned or operated by Negroes are in many cases less desirable physical risks than those owned by the general run of white Americans, but this is not limited to Negroes as a class, as the same is generally true of some foreign nationalities such as Orientals and some of the Southern European nationalities.
The situation in connection with the writing of casualty insurance coverage for Negroes is somewhat different, and it can be said that there is some general discrimination against them in this field merely because of a general prejudice against the colored race. In the event of legal disputes brought to trial before a white jury, it is generally considered that the white man rather than the Negro would be given the benefit of a reasonable doubt. Consequently, the insurer of the Negro feels that they will be at considerable disadvantage in settling claims in court which makes the classification undesirable.
The State of Oregon has adopted the Financial Responsibility Law which makes it necessary for any persons involved in an automobile accident to file evidence of financial responsibility with the designated state authorities. The Oregon requirement is a bond, or acceptable security, for the amount of $11,000.00 or an automobile liability insurance policy with limits of $5,000 and $10,000 for bodily injury and $1000 for property damage. With respect to this type of automobile insurance, the Negro is unquestionably discriminated against.
The standard automobile and liability insurance companies neither solicit nor invite Negro applicants. As a consequence, Negroes desiring to place coverage must apply to the Oregon Casualty Association for assignment of the risk to one of the standard companies. The Oregon Casualty Association will then assign the Negro risk to a company, but the rate at which the policy will be written is substantially greater than the rate applicable to a like class of white risk. At the present time, the rates in part are based on whether the applicant holds an “A,” “B” or “C” gas ration coupon book, the rates for the “C” book holder being higher than for the “A” driver. Regardless of the gas classification of the Negro applicant, when the risk is assigned by the Oregon Casualty Association, the Negro applicant’s premium is based on a “C” book and in addition, he must pay a 15% premium over the standard rates. This increased rate applies to all applicants who secured coverage through the assigned risk plan and not just to Negroes, but there is apparently no factual reason for forcing Negroes to place coverage through the assigned risk plan other than the prejudice existing against Negroes and the possibility of an adverse decision in the event of litigation.
Retail Stores-Merchandising-Credit Policies
Representatives of retail stores, the President of Retail Trade Bureau, and Negro patrons interviewed gave testimony that no discrimination against Negro customers was practiced by the retail concerns of Portland.
Inquiry was made of a number of credit men representing large retail establishments in the City of Portland, as well as the Portland Retail Credit Bureau, regarding the credit policies of Portland institutions with respect to Negro trade. It was discovered that no discrimination exists with respect to granting credit to Negro applicants on retail transactions, so long as the credit rating of the individual and his credit history warrants the extension of credit.
